Take Advantage of a Hot Housing Market!
by Dana Eskridge
It’s hard to believe that just four years ago there were more than 100,000 listings in Metro Atlanta. Now there are fewer than 40,000. What does this mean to the ever-changing housing market? Just remember your basic laws of economics of supply and demand.
From our perch here in relocation, we’re seeing a definite surge in demand for homes throughout our market area. The low inventory has become a problem for transferees moving into the Atlanta market because they might find a home they like, but there’s already an offer on it.
We’re also seeing bidding wars on homes that are in good shape and are priced to appraise. Sometimes they don’t even need to appraise. That’s correct. I heard about a bidding war in East Cobb in a new home subdivision where the homes went under contract in a bidding war that raised the sale price from $500K to $900K. The homes only appraised in the $500K price point, but the purchasers wanted the homes badly enough that they paid cash for the difference. Now that’s an extreme case, but it says something about the demand for homes reaching a critical point.
What does that mean to most purchasers and sellers? For purchasers it means they need to act quickly on properties they want. That goes for both resales and foreclosures as both are being sold at a rapid rate in this economy. For sellers, it means now is the time to sell if you’re looking to move in the next few months and you’re not way under water on your current home. And as builders are beginning to take the cue and are in building mode, it could be a good time to make the lifestyle change you’ve been thinking about.
I keep telling agents, who have buyers who can’t find a home to buy in this low inventory market, “go knock on doors”. Find a neighborhood they like and ask current homeowners in the area if they’re interested in selling. You could end up with a perfect match and you get both ends of the transaction.
Regardless, now is the time for Realtors® to prospect for listings. Knock on doors in neighborhoods you want to have in your portfolio. I’ll bet that you’ll end up with listings you can sell rather quickly.
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